Entering the Telecommunications Business in the Republic of the Union of Myanmar

KDDI Corporation (Head office: Chiyoda-ku, Tokyo; President: Takashi Tanaka, hereinafter referred to as “KDDI”) and Sumitomo Corporation (Head office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) hereby announce having reached an agreement with Myanma Posts & Telecommunications (hereinafter referred to as “MPT”), a government agency in the Republic of the Union of Myanmar (hereinafter referred to as “Myanmar”), to jointly undertake telecommunications operations in Myanmar (hereinafter referred to as “joint operations”) and have officially signed an agreement today.

KDDI and Sumitomo Corporation have established a joint venture [1], KDDI Summit Global Singapore Pte. Ltd. (hereinafter referred to as “KSGS”) in the Republic of Singapore, and KSGS has established a subsidiary, KDDI Summit Global Myanmar Co., Ltd. (hereinafter referred to as “KSGM”), in Myanmar.
KSGM and MPT have signed an agreement regarding the joint operations, which sets the terms of business cooperation, profit sharing and other matters, and KDDI and Sumitomo Corporation will conduct the joint business through KSGM.

Myanmar has a mobile phone penetration rate of approximately 10% [2] in relation to a population of around 65 million [3], and demand is expected to increase greatly in the future. Using the experience and skills that KDDI has cultivated both in Japan and overseas as a general telecommunications carrier, and the proven track record that Sumitomo Corporation has built up over 60 years in Myanmar as well as the expertise and experience it has accumulated in overseas telecommunications projects, the joint operations will provide “Japanese-quality” services of the highest level in the world in mobile and fixed line communication services through upgrading of the telecommunications infrastructure. Further, the joint operations will focus on customer services in call centers and shops to improve customer satisfaction, as well as contribute to the development of Myanmar’s economy and industry and the enhancement of Myanmar’s citizens’ standard of living.

“Myanmar is experiencing a rapid move towards democracy and the market in mobile phones and fixed line communications is expected to grow dramatically in the future,” said Takashi Tanaka, President of KDDI Corporation. “Taking advantage of the wealth of experience and knowledge that we have built up both inside and outside Japan through our mobile phone operations in Mongolia, MVNO business in the U.S. and other operations, KDDI will provide the same level of Japanese-quality services to Myanmar and contribute to the country’s growth and development.”

“Sumitomo Corporation has been involved in a variety of social infrastructure projects such as power generation, telecommunications, and railways in countries all over the world,” said Kuniharu Nakamura, President and CEO of Sumitomo Corporation. “Our business record in Myanmar stretches over 60 years, where we have undertaken railway, telecommunication, and broadcasting improvement projects, power generation projects, as well taking part in developing the Thilawa Industrial Park. Using the know-how and experience that we have thus cultivated, we will do our part to support the improvement of living standards and industrial development in Myanmar through this joint operation.”

[1] Investment by Sumitomo Corporation in the joint venture is conditional to the approval of the authorities concerned based on the antitrust laws applied in the countries concerned
[2] Source: ITU website (as of the end of 2012)
[3] Source: IMF statistics (As of 2013)

A short video to portray the new telecommunications operations
(Narration: English, Subtitles: Myanmar language)